$670K Embezzlement: Former Gustavus Law Professor Guilty
Minneapolis, MN (KROC-AM News) - A former law professor at Gustavus Adolphus College has admitted to a federal fraud charge.
The Office of the U.S. Attorney for Minnesota says 46-year-old James Anthony Kroger embezzled more than $670,000 from a real estate venture in which he was a partner. At the time he was indicted, Kroger was an attorney and worked as a tax and accounting professor at the private university in St. Peter.
“This defendant was a professor and an attorney—someone entrusted to teach and uphold the law. Instead, Kroger betrayed that trust, embezzled more than $670,000, and blew it on a lifestyle of self-indulgence,” said Acting U.S. Attorney Joseph H. Thompson. “In Minnesota, titles and credentials won’t shield you from federal prosecution. If you choose greed over integrity, you will face justice.”
A news release says Kroger convinced his partner to invest about $840,000 into the real estate venture in order to purchase distressed properties in Texas. While managing the day-to-day operations of the partnership, prosecutors say Kroger embezzled most of the invested funds by transferring the money into his personal bank account.
The charges in the case state that Kroger spent the embezzled funds on extravagant personal purchases, including gold and silver bullion. He also wrote checks to family members, paid off loans against insurance policies, and made large cash withdrawals.
Kroger entered a guilty plea this week to one count of wire fraud. He is scheduled to be sentenced in December.
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Gallery Credit: Carly Ross
